Chip Stocks Propel U.S. Equities to Record Highs, While Treasuries, Gold, and Oil Retreat

Market Overview

U.S. equities surged to fresh record highs yesterday, with the Dow, S&P 500, Nasdaq, and small-cap indices collectively closing at all-time highs for the first time in nearly four years. The rally was powered by semiconductor stocks after Intel and NVIDIA announced a cooperation agreement. Intel shares skyrocketed more than 20%, marking their largest single-day gain since 1987, while NVIDIA climbed 3.5%. The Philadelphia Semiconductor Index rebounded more than 3% as a result.

Meanwhile, U.S. Treasury prices fell for a second straight day as initial jobless claims came in lower than expected, underscoring continued labor market resilience. Yields hit a two-week high. The U.S. Dollar Index rebounded for a second session, pulling further away from a three-year low. Offshore Chinese yuan weakened past the 7.11 level, giving up its 11-month peak.

In cryptocurrencies, Bitcoin briefly surged more than $2,000, nearing the $118,000 mark. Commodities faced broad pressure: crude oil slid more than 1% intraday after former President Trump reiterated his preference for low oil prices, while gold futures extended their decline for a second session, dropping over 1% to a one-week low.

Hot Topics to Watch

• Russia–Ukraine Conflict Keeps Oil Under Pressure

• Trump acknowledged that he once believed the Russia–Ukraine conflict would be the “easiest” to resolve, though reality has proven otherwise. He suggested that lower oil prices could force Putin to step back from the conflict, even hinting at increased North Sea production as a supply strategy. Nonetheless, Trump emphasized that now is “not the time to ask Putin for a ceasefire.”

• U.S. Initial Jobless Claims Retreat Sharply

• The U.S. labor market continues to face the dual challenge of declining supply and demand. Despite last week‘s drop in initial jobless claims, broader employment conditions remain soft. Fed Chair Jerome Powell described the situation as a “peculiar balance,” with both supply and demand for labor falling significantly. According to data from the Department of Labor, for the week ending September 13, first-time claims fell to 231,000, well below expectations of 240,000 and the prior week’s 263,000. The figure has now normalized back to its four-year range after the previous weeks anomalous spike.

Key Events to Monitor

• 01:00 (GMT+8) – U.S. Baker Hughes Oil Rig Count (weekly)

• 02:30 (GMT+8) – 2027 FOMC Voter and San Francisco Fed President Mary Daly speaks in a fireside chat on the impact of Artificial Intelligence (AI) on labor market development and economic mobility